Australian milk production continues to plummet, according to the latest statistics from Dairy Australia.
The December production figures, released last week, reveal a 6.5 per cent decline compared with the same month in the previous year.
Year-to-date production was down 7.1pc.
The decline is occurring despite record farmgate milk prices.
If the trend continues, Australia's production for 2022/23 will fall below 8 billion litres for the first time in 30 years.
The figures back up a warning from dairy analysts Fresh Agenda last week.
Fresh Agenda warned of a 'milk implosion", as production "drops like a stone".
In its latest insight report, the Melbourne-based analysts said production had continued a steep decline, first started in late 2015.
Fresh Agenda said the reason wasn't simply climate-driven, as the country had been in a favourable La Nina climate pattern for more than two years.
"No longer is it driven by farmgate milk prices," the report said.
Major factors driving farm exits and the decline in production were that the value of assets were attractive to other producers, a lack of ownership and management succession and ongoing labour shortages.
Tasmania defies the trend
The Dairy Australia data revealed some stark differences between different parts of the country.
Tasmania is defying the national trend with production in December up 1.4pc and year-to-date production almost steady (down just 0.4pc).
Tasmanian production has been slowly picking up since a disastrous start to the season with production down 11.7pc in July.
But it is the only real bright spot.
Production in NSW has taken the biggest hit - with double-digit losses for every month in 2022/23, suggesting the trend is not simply down to extensive flooding in inland dairy areas in October and November.
NSW's December production fell 10.8pc with year-to-date production down 11.9pc.
The decline of milk production in Queensland continues unabated with year-to-date production there down 9.6pc on the back of a 4.2pc decline in December.
Victorian milk production has also taken a big hit - and that has not been confined to the flood-stricken northern regions.
Overall Victorian production for December was down 7.8pc with year-to-date production down 7.5pc.
The biggest decline is in eastern Victoria (Gippsland) down 8.5pc for the year so far (7.9pc in December),
Western Victorian production is down 7pc for the year-to-date (5.3pc in December).
Northern Victorian production has been hit by the floods with double-digit falls in November (-12.1pc) and December (-10.7pc) resulting in a year-to-date decline of 6.9pc.
South Australian production was down 5.6pc in December and 5.4pc year to date.
Western Australian has taken a minor hit with production down 1.8pc in December and 1.9pc year to date.
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Carlene Dowie
Carlene Dowie is the editor of the Australian Dairyfarmer magazine and has more than 30 years' experience as a rural journalist.
Carlene Dowie is the editor of the Australian Dairyfarmer magazine and has more than 30 years' experience as a rural journalist.
